Why did the India-US trade agreement stop?

The trade agreement between India and the US stopped last year due to difficulties. This was reported by Zamin.uz.

According to Reuters agency, US Trade Secretary Howard Lutnick stated that the failure to implement the agreement was due to Indian Prime Minister Narendra Modi not calling Donald Trump before the deal. This situation was also reported by the kursiv.uz publication.

The Indian side denies these claims. According to Reuters sources, after the negotiations reached a dead end, the US increased tariffs on certain products imported from India by up to 50 percent.

Additionally, Donald Trump warned that tariffs could be increased further if India does not reduce oil imports from Russia. As a result, due to the failure of the agreement, the Indian currency – the rupee – depreciated to a record low.

This situation has heightened concerns among investors about the future of the negotiations. Nevertheless, India hopes that its tariff rates will be at the level of the agreements the US has made with the United Kingdom and Vietnam.

However, according to Howard Lutnick, the deadline set for this proposal has already passed.